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Dow ends above 40,000 mark for the first time
STORY: The Dow Jones industrial average closed above the 40,000 mark for the first time ever on Friday, while the other two major indexes took a break, after data this week supported expectations for interest rate cuts by the Federal Reserve.The Dow added roughly a third of a percent. The S&P 500 edged up about one tenth of a percent, while the Nasdaq fell but only fractionally. All three main indexes touched record highs in the previous session, following inflation data that boosted investor hopes for Fed rate cuts this year.But the exuberance wore off Friday, says Anna Rathbun, Chief Investment Officer of CBIZ Investment Advisory Services."I think the market is taking a breather today. After the CPI and retail sales report, the bet that the Fed may be cutting rates sooner rather than later really drove the markets up both on the bond and the stock market side. They can't all keep going up forever. So today I think they're taking a break."The stocks that moved included Reddit, which finished 10% higher after news it was partnering with OpenAI to bring its content to ChatGPT. Shares of Advanced Micro Devices rose more than a percent after Microsoft said it plans to offer its cloud computing customers a platform of AMD artificial intelligence chips that will compete with those made by Nvidia.Shares of that chipmaker, which reports quarterly results next week, fell 2%. And after spiking in a meme-stocks frenzy earlier in the week, shares of GameStop sank nearly 20%. The video game retailer said on Friday that it would sell up to 45 million shares to raise capital and also said it expects first-quarter net sales to drop from a year ago.
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Business Lookahead: The good, the bad and the ugly
STORY: From hope for a brightening global economic outlook, to AI darling Nvidia reporting results... these are the stories to watch for in business and finance in the coming week.:: Global business activityMay business activity numbers from big economies should reinforce a brighter global economic outlook.A slow euro area recovery appears underway...U.S. inflation just resumed its downward trend...and China grew faster than expected in Q1. So, global PMIs should stay in the expansion zone for now. That could easily change as trade tensions rise.:: Chip timeNvidia's quarterly results on Wednesday could set the tone for U.S. stock markets.The chipmaker is expected to report a massive jump in revenue to almost $25 billion...from just over $7 billion a year earlier.The company may need to meet those lofty expectations and then some to keep its soaring stock price moving higher. :: Shein and sparkleThere have been plenty of reports on the diminished status of London's stock market.But that could be about to change, with a string of household names emerging as potential listing contenders.Chinese fast fashion brand Shein is stepping up preparations for a potential IPO that could be London's largest ever if it's valued at $66 billion.Diamond firm De Beers is another.:: Watch, worry, waitThe Reserve Bank of New Zealand is expected to leave rates unchanged on Wednesday for a seventh straight meeting.It was the first major monetary authority to ease at the start of the global health crisis, and the first to hike in the aftermath.But sticky inflation and a flatlining economy may keep the bank in the "watch, worry and wait" stance it adopted a year ago.
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CIO sees market volatility in run-up to US election
STORY: "We are seeing some deterioration on the lower income side of American consumers and that could actually accelerate," said Rathbun. "So for the rest of the year, I think it's going to be challenged.""And don't forget there's election coming up in November and there should be some volatility as we hear more about the economic policy that the two presidential candidates may be proposing as we get closer to the election," she added.
